1. it is long position in the company OCIR ( OCI Resources LP ) and short position in the company RIO ( Rio Tinto plc ).
2. it is long position in the company OCIR ( OCI Resources LP ) and short position in the company ARLP (Alliance Resource Partners LP).
Stocks of the company OCIR are stronger than RIO and ARLP since 2014. I think that next 2 months stocks of the company OCIR will be stronger than RIO ana ARLP .
I reccomend to use a conservative approach. The trade capital divide equally between 2 pairs: OCIR-RIO and OCIR-ARLP.
The proportions of each company in pairs:
1. Stocks of the company RIO are more than OCIR:
* 53% it is long OCIR .
* 47% it is short RIO .
2. Stocks of the company OCIR are more than ARLP:
* 37% it is long OCIR .
* 63% it is short ARLP .
This allocation between stocks is necessary for the parity volatilities.